The blockchain concept was initially developed to underpin the digital currency Bitcoin. To prevent the possibility of double spending, Satoshi Nakamoto created a digitally cryptographically secure transaction ledger called the blockchain.
Although the concept was first developed for Bitcoin and other cryptocurrencies, blockchain technology has many other practical uses, one of them being online gambling, where you can play casino with crypto based currencies. The other top 3 applications are as follows:
1. Supply chain management
Today’s businesses need to be nimble and effective. Due to the international expansion of manufacturing and the rising demand for goods, goods must be delivered rapidly from one part of the world to another.
The COVID-19 epidemic was a frightening example of what may happen when the supply chain breaks down. It caused a shortage of several products that has persisted to the present day in some circumstances. Blockchain technology is one option to speed up and improve the efficiency of supply chain management.
Anyone can see where an item came from and how far it travelled using blockchain technology. The blockchain platform can be used by all the participants in the supply chain journey to cut down on wasted time, extra expenses, and mistakes made by humans. Without a middleman, the potential for deception is greatly diminished.
2. Copyright and property ownership
In the information era, it is essential to have legal title to one’s data, especially creative works like movies, songs, and paintings. It is important to safeguard creatives from organisations that might steal or misappropriate their work. Google and Meta each have their own verification mechanisms, but they aren’t foolproof. Fortunately, this is where blockchain technology may be useful.
The blockchain is a transparent and secure digital ledger that can be used to store copyright information digitally. Since the blockchain is public, no outsider could dispute the owner without providing evidence of their rightful possession. Non-fungible tokens are an example of an adjacent technology that uses digital certificates to guarantee ownership and ensure that creators continue to earn money from their work even after it has been sold numerous times.
3. Personal financing
It is a fundamental part of the banking and finance sector that banks and other financial institutions lend money to people and businesses when they are in need. However, the system has flaws, such as the lender’s potential bias in the loan approval process, time-consuming Know Your Customer (KYC) procedures, and lengthy wait times. These ineffective processes might be eradicated by blockchain technology.
The loan application, underwriting, and funding phases of the traditional lending procedure all require the involvement of a third party. However, this can be automated with the use of smart contracts on the blockchain. When specific circumstances specified in the contract are met, the code that makes up the smart contract is activated.
Smart contracts allow the lender and the borrower to come to mutually agreeable and workable parameters, such as proof of money and payment scheduling. Without a bank or other middlemen, these contracts will confirm and record transactions, allowing for quicker verification of the loan applicant and prompt loan payout. These are only a few of the many uses for blockchain technology.
If there are inefficiencies or room for human mistake in a system, blockchain technology has the potential to improve it. This means that any business that believes its system could benefit from blockchain technology’s distributed approach is likely correct.
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